Portable transaction cards with processing power, or so-called “smart cards” are being developed in the size of conventional plastic credit cards. These smart cards can include an embedded computer chip having processing power and memory (a microprocessor). Variants of these cards were described in the early 1970's by, for example, Moreno in U.S. Pat. No. 4,007,355, the entirety of which is incorporated herein by reference.
The International Standards Organization (ISO) has established a number of specifications for such electronic cards under the ISO/IEC Standards Series 7810, 7811, 7816, and 10536. A typical smart card includes a plurality of spaced apart electrical contacts on one surface which provide input and output interfaces with the microprocessor in the card. Cards compliant with ISO/IEC Standard 7816-series have contacts that interface with a terminal via ohmic contact (“contact” cards). Cards compliant with, e.g., ISO/IEC Standard 10536-series rely on close-coupling with a terminal (“contactless” cards). Some smart cards are now being produced with both types of contact schemes, i.e., they are compatible with terminals having contact interfaces or contactless interfaces.
The microprocessor utilized possesses the ability to hold an operating program and other information in volatile memory alterable by a CPU (Central Processing Unit), which possesses “hard-wired” control circuitry. The CPU and the various types of memory, including volatile and non-volatile memory, together comprising the microprocessor may all be contained by a single IC (Integrated Circuit) chip.
One application for smart cards is as an electronic purse or “stored value card.” In this type of application, a prepaid amount of value or representation of currency is stored in the smart card memory for use in the place of conventional cash. In operation, the stored value card is inserted into a terminal device which communicates with the card through the contacts.
The terminal device may be, e.g., incorporated into a vending machine, cash register, or other point-of-sale device. Value equal to the amount of the purchase is passed from the consumer's card to the merchant terminal or to a central clearing and authorization system so the merchant or vendor may be credited with the appropriate amount of value. Correspondingly, the amount of available currency in the consumer's card is reduced by the amount of the purchase. These stored value applications are becoming more widely used in the U.S and throughout the world. Currently primary applications in which stored value cards are used include purchases at vending machines, telephones, gasoline pumps, and other point of sale devices in which the goods or services purchased are low dollar value items.
Stored value card systems are operated as both “open” or “closed” systems. “Closed” systems are limited to specific participating merchants. For example, some universities offer stored value cards to their students for use in university cafeterias and book stores. The cards are not compatible with point of sale devices or terminals outside of the university. These “closed” systems are easier to implement from a technical and security perspective because of this closed universe of uses. “Open” systems, on the other hand, allow use of the card at substantially any merchant who has a compatible point of sale device or card reader. In many respects, “open” stored value card systems are preferable to “closed” systems, as they allow the cards to be used in a wide variety of places, for various types of purchases. “Open” systems, however, are more difficult to implement and have more rigorous security requirements.
As these stored value cards become more widely available, it is desirable that they be capable of additional functions that are useful for smart card carriers and that are not now available. Drawbacks in present technology include the need to carry various cards for use as credit cards, identification cards, phone cards, and smart cards. The present invention solves this problem and other problems by providing a multi-application/function smart card that can be used a cash/debit card, a credit card, a phone calling card, an ATM card, and an identification card. The present invention therefore eliminates the need for consumers to carry more than one card with them at all times.
Another benefit achieved by eliminating the need to carry multiple cards is that several different credit, banking, and telephone service operating institutions need not be contacted when the card is lost or stolen. Only one institution need be contacted to disable the card. Moreover, once a credit card is lost or stolen, it can be virtually impossible to ever find it again. The present invention solves this problem by coupling a GSM chip or signal transmitter to the smart card for use in connection with a Global Positioning System (GPS) satellite network or the like, to locate the smart card. This system can also be used to locate holders of the card who are missing.
Another disadvantage of current credit and smart cards is that it is currently very difficult to automatically transfer funds from one institution to another. For example, there is no way of conveniently transferring funds from your ATM card to your phone card or transferring funds from your credit card to your electronic “smart card purse” or ATM account. The present invention solves these problems because all functions are on one card, and with that card, funds can be transferred from one account to another.
Many credit card companies today offer some sort of rewards plan for using the credit card to purchase goods or services. The problem is that consumers have so many different cards that accumulating a meaningful number of points or credits from any one institution is difficult. The present invention solves that problem because rewards are accumulated from use of any of the functions of the multi-application/function smart card. Thus, whether the cardholder uses it as an ATM card, a phone card, a credit card, or a debit card, he/she is credited with rewards that can be used to obtain valuable goods and services.
Another disadvantage of current credit and smart cards is that they are incapable of altering the currency of the stored value. The present invention solves this problem by providing a program associated with the smart chip, which can automatically communicate with a central source of currency exchange rate information for converting in real time the currency of the stored value and for generating and providing a current exchange schedule for currencies of any nation. Therefore, travelers can easily and conveniently use their smart cards in foreign countries and can even obtain currency exchange information by using their smart card.
Other limitations of known smart cards and credit cards is that they are not capable of categorizing, automatically storing, and generating information for multiple accounts in real time as transactions occur. The present invention solves this problem by coupling an IC to the card, which can store data about various kinds of transactions as they occur, and that data can be recalled at a later time to generate charts, spread sheets, schedules, account statements, and account summaries. Moreover, the IC of the present invention has this capability for all of the functions of the smart card, including the credit, debit, telephone, ATM, GPS, and identification functions. This information can be extremely useful for immediately accessing account information as well as movement history through the GPS system. Thus, for example, the present invention allows a traveler to generate a map or a travel log of where he/she has been for a predetermined length of time.